m gets worse every year. This means that you should have knowledge of the current tax laws. "'You will have a unique opportunity to make decisions on exactly how much money will change hands, and how I will allocated on the payment schedule."(Smorgenburg, 112) Maximizing profit for both you and the seller can only be done through proper knowledge of tax law, if you are not comfortable handling this alone, a consultant might not bad a bad idea.After all of the above is settled, the next thing to figure is the amount of initial income is required. Not only the income required to purchase the entity (which will be elaborated upon later), but also the amount of money that you need to survive for the years to come. "If you need $100,000, then don't look at smaller companies which can only yield $30,000." (Tuller, 23) "The following 13 steps will help to locate a target and close the deal in the shortest possible time-and when buying a company, time is money.1. Define realistic parameters.2. Prepare a reasonable Acquisition Plan.3. Review current tax laws for structuring the deal.4. Develop a detailed plan for sourcing potential targets.5. Perform a preliminary due diligence investigation.6. Negotiate a price and terms based on a realistic valuation.7. Perform a thorough due diligence investigation.8. Prepare a complete business plan.9. Develop sources for at least three alternative financing structures.10. Arrange for the final updated due diligence investigation.11. Write the Buy/Sell Agreement and negotiate the final contract language.12. Plan how you will operate the company after closing.13. Attend the closing.Yet another crucial instrument in the purchase of any business is the AcquisitionPlan. This document lists every step and detail leading to the closing of the deal. Starting with the industry survey, it lists the start date, the finish date, and the cost of each of these processes. Following the survey is the target search...
